Alex-followed the link ref house prices. Most interesting is average price 1998 around the 65k mark. Average now around £165k.
Given that lending in 1998 was relatively sensible (3x salary etc) then the 1998 prices were reasonable. Taking the 3x salary as a guide (worked fine in the 'old days') then average salary needs to be around 55k, which is definitely not the case in the UK. Add in job losses and I think house prices generally will continue to fall. Much of consumer spending was based on the 'feel good' factor of their house value going up.